IR8 Question 10 Refunds and/or transfers

If you’re entitled to a refund you can:

transfer it to arrears that are being paid off
transfer all or part of it to your 2020 provisional tax
have it direct credited to a bank or other deposit account, for example, a building society account.

If you’ve made payments towards your 2020 provisional tax and, after completing this return, find you have less or no provisional tax to pay, the overpayment can be included in the amount we refund or transfer. Print the overpaid amount in Box 10A.

Transfers

If you’d like your refund (“the credit”) transferred to another account or to arrears you’re paying off by an instalment arrangement, you’ll need to tell Inland Revenue what date you’d like it transferred. The date you choose depends on what tax has been overpaid and whose account you want the credit transferred to.

If the transfer is to arrears being paid off through an instalment arrangement, you’ll need to include a note with your return, authorising the transfer. Please clearly state:

that the transfer is to arrears currently under an instalment arrangement
the name and IRD number of the taxpayer the transfer should be made to
whether the taxpayer is an “associated taxpayer”
the tax type period
the date you’d like the transfer to take place.

Associated taxpayers

When transferring overpaid tax, “associated taxpayers” means a:

company you’re a shareholder-employee in
partner in the same partnership
relative (for example, child, parent, spouse, or partner)
trustee of a family trust you’re a beneficiary of.

You can ask for your credit to be transferred at any date as long as it’s not before the relevant date shown below.

Transfer date

For credit transferred:

to your account/an associated person’s account

If the credit is from excess tax deducted (for example, PAYE deducted) it’s the day after your balance date (or 1 April if your balance date is before 31 March). If the credit is from overpaid provisional tax it’s the day you overpaid it.

to a non-associated person’s account

It’s the later of:

the day you requested the transfer, or
the day after you file your return.

Future transfer dates

If you’d like your credit transferred at a date in the future, attach a note to the front of your return with details of the:

amount you want transferred
account you want it transferred to, and if it’s the account of an associated person
date you’d like it transferred.

If you don’t tell Inland Revenue the date you’d like your credit transferred, they will transfer it at a date they think gives you the greatest advantage. Contact Inland Revenue if you’d like to change the transfer date and tell them if this transfer is to cover a debt.

Direct credit

See IR8 Question 5 Bank account number for more information on how to have your refund direct credited to your bank account.